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Latin America

Noronha Advogados

The National Monetary Council Resolution 2683 of December 29, 1999 allows domestic banks to freely invest, in the domestic market, funds borrowed abroad, regardless of the previously existing requirements as to the nature and minimum term for repayment of the international operation.

However, Ruling 492 of December 29 1999 of the Finance Minister increases from zero to 5% the rate of Financial Tax applicable on the entry of international funds borrowed for less than 90 days. In the event that funds are the proceeds of international issue of securities, with put/call options before final maturity, the date of the first option will be considered for determination of the applicable rate.

Eliana Maria Filippozzi

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